OLYMPIA – This week, the Office of the State Treasurer (OST) helped state agencies and local government partners access over $56 million in low-interest financing to purchase new equipment and service vehicles, and to fund construction costs. Through this week’s sale of Certificates of Participation (COPs), participants are able to leverage the state’s strong credit ratings and reduce their long-term borrowing costs with low interest rates.
Participants include four local fire districts, two school districts, and several state agencies who are financing a variety of emergency and service vehicles and construction projects.
“As cost pressures continue to create challenges across governments, efficient financial management of public funds is essential to reduce costs and deliver for communities across Washington.” said State Treasurer Mike Pellicciotti. “Forging partnerships with local governments to share the benefits of our state’s strong financial standing means more community services and less pressure on the local taxpayer. This is yet another reason maintaining our state’s high credit ratings and long-term financial health must be a priority."
Three times a year OST pools financing requests from state agencies and local governments into the publicly sold COPs. This allows state agencies, as well as local partners in OST’s Local Option Capital Asset Lending Program (LOCAL Program) to acquire equipment and real estate under the umbrella of the state’s credit. This process leverages Washington’s strong ratings to help local governments secure financing at the lowest available interest rates – ultimately reducing costs and saving taxpayer dollars.
Whatcom County Fire Protection District 17, Whatcom County’s smallest fire district, will use a $2,200,000 financing obtained through the LOCAL Program to construct a new fire station on higher ground after its only fire station was subjected to repeated coastal flooding causing significant damage to the station.
Additionally, the Spokane School District participated in the LOCAL Program for the first time this week to purchase an entire fleet of 149 school buses for approximately $35 million, after ending the district’s longstanding contract with outside providers for school bus services.
This was the state’s third COP issuance in Fiscal Year 2026. The program financed $106,570,000 of equipment and real estate purchases during fiscal year 2025 and $114,990,000 thus far in Fiscal Year 2026.